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GAAP Policies and Procedures, Second Edition

Name: GAAP Policies and Procedures, Second Edition
Author: Colorado Steven M. Bragg Englewood
ISBN: 9780470081839

by Colorado Steven M. Bragg Englewood

April 2007

Intermediate to advanced

432 pages

13h 8m

English

Wiley

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Copyright
Dedication
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Preface
About the Author
Acknowledgments
Free Online Resources by Steve Bragg
1. Researching GAAP Implementation Problems
OverviewThe GAAP HierarchyResearching GAAPResearching Accounting TerminologyResearching Accounting Policies and ProceduresResearching Accounting ControlsResearching Accounting Forms and ReportsResearching Accounting FootnotesResearching Accounting Journal EntriesResearching Accounting Recordkeeping
2. Cash, Receivables, and Prepaid Expenses
Definitions of Terms Concepts and ExamplesCashPrepaid ExpensesReceivables—PresentationReceivables—Collateral, Assignments, and FactoringReceivables—Sales ReturnsReceivables—Early Payment DiscountsReceivables—Long-TermReceivables—Bad DebtsDecision TreesReceivables—Ownership DecisionPoliciesCashPrepaid ExpensesReceivablesProceduresCash—Apply Cash to Accounts ReceivableCash—Receive and Deposit CashCash—Process Credit Card PaymentsCash—Reconcile Petty CashCash—Reconcile Bank AccountReceivables—Print and Issue InvoicesReceivables—Calculate the Bad Debt ReserveReceivables—Authorize Bad Debt Write-OffsControlsCashPrepaid ExpensesReceivablesForms and ReportsCash—Mailroom Remittance ReceiptCash—Bank ReconciliationCash—Cash Forecasting ModelReceivables—Bad Debt Authorization FormReceivables—Collection Actions TakenReceivables—Aging ReportReceivables—Loan Collateralization ReportFootnotesCash—Restrictions on UseCash—Restrictions Caused by Compensating Balance AgreementsCash—Excessive Concentration in Uninsured AccountsReceivables—Bad Debt RecognitionReceivables—Separation of TypesReceivables—Used as CollateralJournal EntriesCashBank reconciliationReceivablesAccounts receivable, initial entryAccounts receivable, recording of long-term payment termsAccounts receivable, sale ofAccounts receivable, payment due from factorAccounts receivable, establishment of recourse obligationAccounts receivable, write offAccrue bad debt expenseAccount for receipt of written-off receivableAccrue for sales returnsEarly payment discounts, record receipt ofRecordkeeping
3. Short-Term Investments and Financial Instruments
Definitions of Terms Concepts and ExamplesFair Value HedgesCash Flow HedgesForeign Currency HedgesPoliciesHedges—GeneralControlsHedges—GeneralFair Value HedgesCash Flow HedgesFootnotesShort-Term InvestmentsRestricted Short-Term InvestmentsDisclosure of Objectives for Derivative UseValuation of Financial InstrumentsHedging of Foreign Operation InvestmentRecordkeeping
4. Inventory
Definitions of Terms Concepts and ExamplesGoods in TransitAccounting for InventoriesValuation of InventoriesOverhead costs allocable to inventoryLower of cost or market ruleSpecific identification inventory valuation methodFirst-in, first-out (FIFO) inventory valuation methodLast-in, first-out (LIFO) inventory valuation methodDollar-value LIFO inventory valuation methodWeighted-average inventory valuation methodDecision TreesPoliciesGoods in TransitAccounting for InventoriesValuation of InventoriesProceduresGoods in Transit—Receiving ProcedureAccounting for Inventories—Physical Count Procedure for Periodic InventoryAccounting for Inventories—Cycle Counting Procedure for Perpetual InventoryAccounting for Inventories—Part Logging Procedure for Perpetual InventoryAccounting for Inventories—Inbound Consignment InventoryAccounting for Inventories—Obsolete Inventory ReviewValuation of Inventories—Period-End Inventory ValuationValuation of Inventories—Lower of Cost or Market CalculationControlsGoods in TransitAccounting for InventoriesValuation of InventoriesForms and ReportsGoods in TransitAccounting for InventoriesValuation of InventoriesFootnotesDisclosure of InventoryJournal EntriesGoods in TransitRecord received goodsMove inventory to work-in-processMove inventory to finished goodsSell inventoryAccounting for InventoriesAdjust inventory for obsolete itemsAdjust inventory to lower of cost or marketAdjust inventory to physical countWrite off abnormal scrap/spoilageValuation of InventoriesRecord indirect expenses incurredRecord indirect wages incurredRecord receipt of suppliesRecord normal scrap/spoilageAllocate overhead costs to inventoryRecordkeepingGoods in TransitAccounting for InventoriesValuation of Inventories

5. Revenue Recognition
Definitions of Terms Concepts and ExamplesRevenue Recognition ScenariosBill and Hold Revenue TransactionsRecording Revenues at Gross or NetReducing Revenue by Cash Paid to CustomersLong-Term Construction ContractsService RevenuesRecognition of Losses on Service ContractsRecording Initiation Fees as Service RevenueRecording Out-of-Pocket Expense ReimbursementsSales When Collection Is UncertainRepossession of Goods under Installment SalesRevenue Recognition When Right of Return ExistsRevenue Recognition for Multiple DeliverablesFranchise SalesMotion Picture RevenuesDecision TreesRecording Revenues at Gross or NetRecording Service RevenuesPoliciesRevenue—GeneralBarter RevenuesLong-Term Construction ContractsSales When Collection Is UncertainRevenue Recognition When Right of Return ExistsFranchising RevenuesProceduresIssue a Customer Credit RatingProcess a ShipmentCreate an InvoiceCompare Billings to the Shipping LogReview Pricing ErrorsProcess Bill and Hold TransactionsProcess Sales ReturnsCollect Overdue AccountsLong-Term Construction Contracts—Percentage-of-Completion CalculationService Revenues—Advance Recognition of LossesSales When Collection Is Uncertain—Goods RepossessionRevenue Recognition When Right of Return ExistsControlsGeneralBarter RevenuesCash Payments to CustomersRecording Revenues at Gross or NetLong-Term Construction ContractsService RevenuesSales When Collection Is UncertainRevenue Recognition When Right of Return ExistsMultiple Deliverable Arrangements (MDAs)Franchise RevenuesForms and ReportsCustomer Credit ApplicationAcknowledgment of Bill and Hold TransactionSales Return Authorization FormSales Return Credit Calculation FormFootnotesDisclosure of Revenue Recognition PolicyDisclosure of Bill and Hold TransactionsDisclosure of Contract Revenue RecognitionDisclosure of Barter RevenueDisclosure of Consignment RevenueDisclosure of Gain or Loss on Asset SaleDisclosure of Life Insurance ProceedsDisclosure of Research and Development RevenueDisclosure of Warranty Revenue RecognitionDisclosure of Membership Fee RecognitionDisclosure of Sales Return AllowanceDisclosure of Warranty Expense AllowanceDisclosure of Computer Software SalesDisclosure of CustomersDisclosure of Foreign CustomersDisclosure of Installment SalesDisclosure of Sales with Significant Rights of ReturnDisclosure of Multiple DeliverablesDisclosure of Franchise RevenuesDisclosure of Motion Picture RevenuesJournal EntriesRevenue—GeneralRecord sales return allowanceBill and Hold TransactionsCash Payments to CustomersLong-Term Construction ContractsRecord additional revenues under percentage-of-completion methodRecord excessive billings under percentage-of-completion method in a liability accountRecord amount of costs exceeding the total project billingService RevenuesRecord unearned service revenueRecord earned revenue under the proportional performance methodRecognize a loss on a service contractInstallment RevenuesRevenue (installment basis)Repossession of goods sold under installment plansRevenue Recognition When Right of Return ExistsTo record predictable amounts of sales returnsRecordkeeping
6. Long-Lived Assets
Definitions of Terms Concepts and ExamplesFixed Assets—PurchasesFixed Assets—ImprovementsFixed Assets—Capitalization of InterestFixed Assets—DispositionsFixed Assets—Inbound DonationsFixed Assets—Outbound DonationsFixed Assets—Construction in ProgressFixed Assets—LandFixed Assets—Leasehold ImprovementsFixed Assets—Depreciation BaseFixed Assets—DepreciationFixed Assets—Straight-Line DepreciationFixed Assets—Double-Declining Balance DepreciationFixed Assets—Sum-of-the-Years’ Digits DepreciationFixed Assets—Units of Production Depreciation MethodFixed Assets—Asset ImpairmentIntangible AssetsResearch and Development (R&D) CostsDecision TreesPoliciesFixed AssetsIntangible AssetsResearch and Development CostsProceduresFixed Assets—Calculate DepreciationFixed Assets—Conduct Inventory of Fixed AssetsFixed Assets—Enter Fixed Asset PaymentsFixed Assets—Evaluate Capital Purchase ProposalsFixed Assets—Record Gain/Loss on Sale of an AssetFixed Assets—Test Assets for ImpairmentIntangible Assets—Test Assets for ImpairmentControlsFixed AssetsIntangible AssetsResearch and Development CostsForms and ReportsFixed AssetsFootnotesDisclosure of Asset ImpairmentsDisclosure of GoodwillDisclosure of IntangiblesJournal EntriesFixed AssetsDepreciationFixed asset (capitalization of interest)Fixed asset (impairment of)Fixed asset (retirement obligation)Fixed asset (sale of)Fixed asset (outbound donation)Fixed asset (purchase with stock)Fixed asset (exchange for a dissimilar asset)Fixed asset (write-off)Intangible AssetsGoodwill, write-downRecordkeeping
7. Investments
Definitions of Terms Concepts and ExamplesAccounting for Marketable Equity SecuritiesTransfers between Available-for-Sale and Trading InvestmentsAccounting for Investments in Debt SecuritiesTransfers of Debt Securities among PortfoliosRecognition of Deferred Tax Effects on Changes in Investment ValuationsThe Equity Method of Investment AccountingDecision TreesAccounting for Gains or Losses on SecuritiesPoliciesFunds Investment PoliciesAccounting for Marketable Equity SecuritiesTransfers between Investment PortfoliosAccounting for Investments in Debt SecuritiesTransfers of Debt Securities among PortfoliosThe Equity Method of Accounting for InvestmentsProceduresFunds Investment ProcedureTransfers between the Available-for-Sale and Trading PortfoliosThe Equity Method of Accounting for InvestmentsControlsTransfers between Available-for-Sale and Trading InvestmentsTransfers of Debt Securities among PortfoliosThe Equity Method of Accounting for InvestmentsForms and ReportsInvestment Approval FormBond Ledger SheetStock Ledger SheetReport on Investment PositionReport on Amortization of Allocated Asset ValuationFootnotesDisclosure of Cash Deposits in Excess of FDIC Insurance LimitsDisclosure of Change in Reported Method of InvestmentDisclosure of InvestmentsDisclosure of Reduction in Market Value of Equity InvestmentsDisclosure of Increase in Value of a Written-Down Held-to-Maturity InvestmentDisclosure of Sale of Held-to-Maturity InvestmentsDisclosure of Changes in Investment Fair Value After Balance Sheet DateDisclosure of Shifts between Securities AccountsDisclosure of Nonstandard Reported Method of InvestmentDisclosure of Reduced Equity Method InvestmentDisclosure of Reduction in Equity Method InvestmentJournal EntriesAccounting for Marketable Equity SecuritiesInitial investment designated as held-for-tradingInitial investment designated as available-for-saleGain or loss on investment designated as held-for-tradingGain or loss on investment designated as available-for-saleImpairment in value of equity investments classified as available-for-saleTransfers of Equity Securities between Available-for-Sale and Trading PortfoliosShift investment designation from a trading security to an available-for-sale securityShift investment designation from an available-for-sale security to a trading securityAccounting for Investments in Debt SecuritiesInitial investment designated as held-for-tradingInitial investment designated as available-for-saleInitial investment designated as held-to-maturityGain or loss on debt investment designated as held-for-tradingGain or loss on debt investment designated as available-for-saleImpairment in value of debt investments classified as held-to-maturityTransfers of Debt Securities among PortfoliosShift investment designation from the available-for-sale debt security portfolio to the trading debt security portfolioShift investment designation from the available-for-sale debt security portfolio to the held-to-maturity debt security portfolioShift investment designation from the held-to-maturity debt security portfolio to the available-for-sale debt security portfolioShift investment designation from the held-to-maturity debt security portfolio to the held-for-trading debt security portfolioThe Equity Method of Accounting for InvestmentsInvestment (equity method)Investment (equity method), record share of investee incomeInvestment (equity method), record dividends from investeeInvestment (equity method), record periodic amortization of incremental increase in investee assets due to allocation of excess purchase priceInvestment (equity method), sale of investment at a gainInvestment (equity method), sale of investment at a lossRecordkeeping
8. Business Combinations and Consolidated Financial Statements
Definitions of Terms Concepts and ExamplesGeneral ConceptsDetermining the Fair Value of Acquiree AssetsIdentification and Evaluation of Intangible AssetsGoodwill Impairment TestingContingent ConsiderationNoncontrolling InterestsLeveraged BuyoutsReverse AcquisitionsSpin-Off TransactionsDisposal of a Business SegmentConsolidation RequirementsVariable Interest EntitiesDecision TreesDetermination of Control in a Leveraged BuyoutPoliciesProceduresControlsForms and ReportsImpairment Testing with Expected Present Value FormFootnotesJournal EntriesInitial purchase transactionNegative goodwill offsetWrite-off of impaired goodwillIncreased investment in subsidiarySpin-off of subsidiary
9. Current Liabilities and Contingencies
Definitions of Terms Concepts and ExamplesCurrent Liabilities—PresentationCurrent Liabilities—AdvancesCurrent Liabilities—BonusesCurrent Liabilities—CommissionsCurrent Liabilities—Compensated AbsencesCurrent Liabilities—DebtCurrent Liabilities—Employee TerminationsCurrent Liabilities—Property TaxesCurrent Liabilities—RoyaltiesCurrent Liabilities—WagesCurrent Liabilities—Warranty ClaimsContingenciesContingencies—Debt Covenant ViolationContingencies—Debt GuaranteesContingencies—Guaranteed Minimum Option PricePoliciesCurrent LiabilitiesProceduresCurrent Liabilities—Accounts PayableControlsCurrent LiabilitiesContingenciesForms and ReportsCurrent Liabilities—Commission Calculation WorksheetCurrent Liabilities—Wage Accrual SpreadsheetCurrent Liabilities—Royalty Calculation SpreadsheetCurrent Liabilities—Vacation Accrual SpreadsheetFootnotesDisclosure of Collective Bargaining AgreementsDisclosure of Contingent Asset Purchase ObligationDisclosure of Contingent LiabilitiesDisclosure of Employment Contract LiabilitiesDisclosure of Gain ContingenciesDisclosure of Geographic RiskDisclosure of Government InvestigationDisclosure of Indebtedness GuaranteesDisclosure of Industry RiskDisclosure of LitigationDisclosure of Outsourced Production LiabilityDisclosure of Postemployment BenefitsDisclosure of Purchasing CommitmentsDisclosure of Reseller LiabilityDisclosure of Royalty PaymentsDisclosure of Self-Insurance LiabilityDisclosure of No InsuranceDisclosure of Supplier Concentration RiskDisclosure of Taxation DisputesDisclosure of Unasserted ClaimsDisclosure of Vacation LiabilityDisclosure of Warranty LiabilitiesJournal EntriesCurrent LiabilitiesAccrue benefitsAccrue bonusesAccrue commissionsAccrue property taxesAccrue royaltiesAccrue salaries and wagesAccrue vacation payAccrue warranty claimsRecord customer advancesContingenciesRecognition of minimum option priceRecordkeeping
10. Long-Term Debt
Definitions of Terms Concepts and ExamplesOverview of BondsDebt ClassificationBonds Sold at a Discount or Premium to Their Face ValueEffective Interest MethodDebt Issued with No Stated Interest RateDebt Issuance CostsNotes Issued with Attached RightsNotes Issued for PropertyExtinguishment of DebtScheduled Bond RetirementConvertible DebtConvertible Debt Issued in the MoneyConvertible Debt—Accrued but Unpaid Interest on Converted DebtConvertible Debt—Subsequent Change in Offering to Induce ConversionDebt Issued with Stock WarrantsDecision TreesPoliciesNotes and BondsExtinguishment of DebtConvertible DebtDebt Issued with Stock WarrantsProceduresNotes and Bonds—Borrowing Short-Term FundsNotes and Bonds—Loan Collateralization ReportEffective Interest MethodExtinguishment of DebtConvertible DebtDebt Issued with Stock WarrantsControlsNotes and BondsEffective Interest MethodExtinguishment of DebtConvertible DebtForms and ReportsNotes and Bonds—Loan Borrowing/Paydown FormNotes and Bonds—Loan Collateralization ReportNotes and Bonds—Bond Status ReportFootnotesDisclosure of LoansDisclosure of Loan GuaranteesDisclosure of Unused Credit FacilitiesDisclosure of Related-Party LoansDisclosure of Loan AccelerationDisclosure of Callable ObligationsDisclosure of Debt RestructuringDisclosure of Loan ReclassificationDisclosure of Loan ExtinguishmentDisclosure of Convertible DebtDisclosure of Stock Warrants Issued with DebtJournal EntriesNotes and BondsSale of bonds at a discountSale of bonds at a premiumSale of debt issued with no stated interest rateIssuance of debt for cash and other rightsCapitalization of debt issuance costsNotes issued for propertyEffective Interest MethodInterest, imputedExtinguishment of DebtRepurchase of debtRepurchase of debt with subsequent gain in intrinsic equity valueRepurchase of debt with subsequent loss in intrinsic equity valueAsset transfer to eliminate debtConvertible DebtRecord conversion of convertible debt to equity, book value methodRecord conversion of convertible debt to equity, market value methodRecord issuance of convertible debt with strike price already in the moneyRecord issuance of convertible debt with strike price already in the money but contingent on a future eventRecord conversion to equity with accrued but unpaid interest expenseRecord conversion to equity following a sweetening of conversion featureDebt Issued with Stock WarrantsInitial entry of bonds sale with attached warrantsRecordkeeping
11. Leases
Definitions of Terms Concepts and ExamplesAccounting for Leases—LesseeAccounting for Leases—LessorAccounting for Operating Leases—LessorAccounting for Sales-Type Leases—LessorAccounting for Direct Financing Leases—LessorLease TerminationsLease ExtensionsSubleasesSale-Leaseback TransactionsDecision TreesPoliciesAccounting for Leases—LesseeLease TerminationsProceduresAccounting for a Capital Lease—LesseeAccounting for a Sales-Type Lease—LessorAccounting for a Direct Financing Lease—LessorControlsAccounting for Leases—LesseeAccounting for Leases—LessorLease TerminationsForms and ReportsLease Payments ReportLease Termination ReportFootnotesDisclosure of Leases by LesseesDisclosure of Lease Termination CostsDisclosure of Sale and Leaseback TransactionsDisclosure of Leases with Related PartiesDisclosure of Treatment of Free Rent PeriodsDisclosure of Sublease RentalsDisclosure of Operating Leases by LessorDisclosure of Direct Financing and Sales-Type Leases by LessorJournal EntriesAccounting for Leases—LesseeLease, capital (initial record by lessee)Accounting for Leases—LessorInitial lease record by lessor (sales-type lease)Receipt of cash payments by lessor (sales-type lease)Recording of periodic interest revenue by lessor (sales-type lease)Return of asset to lessor at end of lease (sales-type lease)Initial lease record by lessor (direct financing lease)Receipt of cash payments by lessor (direct financing lease)Recording of periodic interest revenue by lessor (direct financing lease)Return of asset to lessor at end of lease (direct financing lease)Lease ExtensionsConversion of a capital lease to an operating leaseSale-Leaseback TransactionsSale-leaseback transactions for the lessee (capital lease)Recordkeeping
12. Pensions and Other Postretirement Benefits
Definitions of Terms Concepts and ExamplesPoliciesControlsFootnotesJournal EntriesRecord net pension costContribution to pension planRecord required minimum liabilityRecord postretirement benefits
13. Stockholders’ Equity
Definitions of Terms Concepts and ExamplesLegal Capital and Capital StockConvertible Preferred StockStock SplitsStock SubscriptionsRetained EarningsStock WarrantsDividendsTreasury StockOptionsOption Vesting PeriodStock Appreciation RightsEmployee Stock Ownership PlansDecision TreesDividends—Recording of Different TypesPoliciesLegal Capital and Capital StockStock SubscriptionsDividendsTreasury StockOptionsStock Appreciation RightsEmployee Stock Ownership Plan (ESOP)ProceduresIssue Capital StockManage Stock Subscriptions (Employees)Issue Property DividendsTreasury Stock—Record Gains and Losses on Resale of Treasury StockTreasury Stock—Shares Repurchased under a Greenmail AgreementOptions—Measurement Using SFAS 123 RequirementsOptions—Remeasurement on Option Extension Date (APB 25 Approach)ControlsLegal Capital and Capital StockStock SubscriptionsRetained EarningsDividendsTreasury StockStock Appreciation RightsOptionsForms and ReportsLegal Capital and Capital StockStock SubscriptionsStock Option Detail ReportStock Appreciation RightsFootnotesDisclosure of Capital StructureDisclosure of Subsequent Equity TransactionsDisclosure of Change in the Number of Authorized SharesDisclosure of Stock SaleDisclosure of Stock SubscriptionsDisclosure of Converted BondsDisclosure of Redeemable Preferred SharesDisclosure of Cash DividendsDisclosure of Noncash DividendsDisclosure of Dividends DeferredDisclosure of Employee Stock Ownership PlanDisclosure of Employee Stock Purchase PlanDisclosure of New Type of StockDisclosure of Par Value ChangeDisclosure of Retained Earnings SegregationDisclosure of Reserved StockDisclosure of Stock Repurchase ProgramDisclosure of Treasury Stock HeldDisclosure of Greenmail Stock RepurchaseDisclosure of Sale of Treasury StockDisclosure of Stock CompensationDisclosure of Stock ContributionDisclosure of Stock Redemption AgreementsDisclosure of Stock SplitsDisclosure of Stock OptionsDisclosure of Stock Option RepricingDisclosure of Stock Appreciation Rights (SAR)Disclosure of Warrants IssuedJournal EntriesLegal Capital and Capital StockInitial sale of stockNetting of stock issuance costs against sale proceedsStock issued for services rendered or goods receivedConversion of preferred stock to common stockStock split with no change in par valueStock SubscriptionsStock subscription, initial entryStock subscription, payment ofWarrantsInitial entry of bonds sale with attached warrantsDividendsDividend declaration, cash paymentDividend declaration, property dividendDividend payment, property dividendDividend declaration, small stock dividendDividend declaration, large stock dividendDividend declaration, scrip dividendDividend declaration, liquidatingDividend payment in cashTreasury StockTreasury stock, purchase under the cost methodTreasury stock, retirement under the cost methodTreasury stock, sale at price higher than acquisition priceTreasury stock, sale at price lower than acquisition priceTreasury stock, purchase under the constructive retirement methodTreasury stock, repurchase under a greenmail agreementOptionsOptions issued with strike price below the market priceOptions earned over timeOptions used to purchase sharesOptions lapsed (APB 25 approach)Options lapsed (SFAS 123 approach)Options purchased by the company (SFAS 123 approach)Stock Appreciation Rights (SAR)Record increase in value of SAR grant payable in cashRecord increase in SAR grant payable in stockRecord exercise of SAR grant payable in cashRecord exercise of SAR grant payable in stockEmployee Stock Ownership Plan (ESOP)Incurrence of loan to purchase sharesPurchase of shares by ESOP from sponsoring companyPayments against note payable by ESOPDividends declared on shares held by ESOPRecordkeeping
14. Interim Reporting
Definitions of Terms Concepts and ExamplesPoliciesProceduresControlsFootnotesRecordkeeping
15. Segment Reporting
Definitions of Terms Concepts and ExamplesDecision TreesPoliciesProceduresSegment Determination ProcedureMajor Customer Reporting ProcedureControlsFootnotes
16. Foreign Currency
Definitions of Terms Concepts and ExamplesThe Current Rate MethodThe Remeasurement MethodTranslation of Foreign Currency TransactionsExchange Rates Used for CalculationsIntercompany TransactionsDecision TreesPoliciesTranslation of Foreign Currency Financial StatementsTranslation of Foreign Currency TransactionsProceduresFinancial Statement Translation—Highly Inflationary Economy DeterminationApplication of the Current Rate MethodApplication of the Remeasurement MethodTranslation of Foreign Currency TransactionsControlsTranslation of Foreign Currency Financial StatementsTranslation of Foreign Currency TransactionsForms and ReportsTranslation of Foreign Currency Financial StatementsFootnotesJournal EntriesTranslation of Foreign Currency Financial StatementsFinancial statement translation adjustmentTranslation of Foreign Currency TransactionsTranslation of foreign currency transactionsRecognition of the sale of a foreign subsidiaryRecordkeeping

Overview

Now fully updated and at your fingertips the most practical, authoritative guide to implementing GAAP Get the answers you need to prepare financial statements and keep up to date on the latest FASB requirements. Now fully revised and updated, Wiley GAAP Policies and Procedures, Second Edition is an ideal companion to the Wiley GAAP guide and provides the practical application information essential to ensuring that a company's accounting systems are fully capable of incorporating the most recent GAAP. A concise version of the more detailed GAAP found in the Wiley GAAP guides, Wiley GAAP Policies and Procedures, Second Edition features handy, illustrative decision trees showing how to determine which GAAP ruling to use in a variety of situations, eliminating hours of time wading through detailed GAAP rulings and presents:
* New chapters on interim reporting, segment reporting, and accounting changes and correction of errors
* Updated content on FAS No. 151, Inventory Costs, FAS No. 153, Exchanges of Non-monetary Assets, FAS No. 154, Accounting Changes and Error Correction, FAS No. 156, Servicing of Financial Assets
* Implementation on nineteen newly issued EITFs
* Specific accounting policies that comply with GAAP, especially in terms of creating controls that mesh with GAAP
* The most common accounting transactions modified to work within GAAP restrictions
* Specific controls that allow the maximum level of control over accounting systems while remaining in compliance with GAAP
* Templates for forms and reports that can be used in a GAAP-compliant accounting system
* Numerous examples of footnotes that can be used to describe GAAP-mandated financial disclosures
* Hundreds of GAAP-compliant journal entries for most accounting transactions
Wiley GAAP Policies and Procedures, Second Edition is a valuable tool for CFOs, controllers, accounting managers, and general ledger accountants who need to ensure that their company properly treats all types of accounting transactions in accordance with GAAP.

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